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"Let Poppi be Poppi." That's been the operative phrase this week as the co's Austin-based leadership team sits down with its new owners at PepsiCo to map out integration after closing of transaction for $1.95 bil on Mon, as CEO Chris Hall outlined to us today. With contact not possible until close of deal, it's been hectic week as vertical leads in various disciplines get to know their counterparts even as Poppi team scrambles to get summer activations moving just ahead of Memorial Day weekend. Celebration? Just pizza ordered in, Chris said. Less trivially, when's cutover from current DSD network comprised mainly of beer houses to bottling system? Not even been discussed yet, Chris indicated. "We couldn't talk until the close," he reminded. "So there hasn't been a strategic discussion. It's business as usual." As reported, that closing price included $300 mil of anticipated tax benefits that will be offset to some degree by performance-based earnout considerations to incent the married founders Allison and Stephen Ellsworth and leadership led by Hall. Allison has open-ended commitment to stay on as face of brand on social media and in media appearances while advising on general direction, and her husband Stephen will continue to work with lab in Austin on product development, Hall told us.The deal comes, of course, as so-called gut pop segment continues to boom and draw new entrants, including one under Simply brand from Coca-Cola and another via Bloom brand for Keurig Dr Pepper, among PepsiCo's key rivals. By now, most retailers have begun to congregate their soda-alternatives in modern-soda sections, from Walmart (whose buyer includes phrase in his job title now) to Target to Safeway/Albertsons. Of course, that section's premise is built in part on notion - made explicit in some marketing by Poppi, Olipop and Zevia - that conventional CSDs aren't good for you. That "let Poppi be Poppi" mantra is meant to signal that the brand should be free to ply its most productive marketing direction and, a week in at least, nothing's been said by Pepsi execs in multiple sessions about reining it in, Hall said. After all, he noted, it did deal to deal to address a changing market; in announcement of deal's closing, Pepsi itself puts Poppi in same class as Siete and Sabra acquisitions that have been "aimed at aligning with consumers&#39; modern wellness priorities." Anyway, "what's the definition of modern soda?" Chris added.Hall indicated the partners are determined to avoid any impulse to rushed integration but rather to learn from one another - including PEP people studying on Poppi's breed of adept social-media-oriented marketing. Ram Krishnan, CEO of PepsiCo Beverages North America, has been down to co's Austin base and overall, Chris views Pepsi execs he's seen so far as "very professional and humble," meshing well with Poppi team. Poppi hasn't yet gone out to recruit execs who're familiar with operating within Pepsi system, tho that may come down the road.As with another strategic partner of PepsiCo, Celsius energy brand, foodservice should prove a big unlock down the road. On its own Poppi has scratched the surface via entries to partners like Chipotle and some corporate accounts, but there's ton of upside. As for sports and entertainment presence, Poppi has gotten foothold starting with LA Dodgers (without pouring rights) and lately Inter Miami (with pouring rights). Also TBD.As for the imminent 100 days of summer, that started with drop yesterday of LTO called Punch Pop that sports visually hectic can graphics from NY-based artist Matthew Langille that will be pooled out into ancillary paraphernalia with view to helping bring connectivity and happiness to consumers at time of stressful economic situation and political stresses, Chris said. It's striking departure from usual look of can but is looking like it could be biggest winner as LTO, he said. Similarly energizing pool party TV campaign featuring investor/endorser Alix Earle will continue momentum with media buys on channels like Bravo. And co already is recruiting for crucial back-to-school activations at college campuses, where the 300+ sororities the brand worked last year might come close to doubling this year. Effort to fill 300 slots for college ambassadors has drawn over 8,000 applicants so far and counting.Tho Poppi might be at growth phase of broadening range of packaging formats, experimentation will be limited for now. Earlier test of 7.5-oz minicans at Walmart proved highly effective in generating trial as single-unit item so they're being put into 6-pks now, with Target the first national customer to commit. Overseas expansion needs to be mapped out too. In Canada for past year and a half, Poppi has attained awareness and velocity levels that took 3-4 years in US, and by now it's national in all key retailers, with DSD network in place to service it. Team has mapped out other markets where its research indicates brand should resonate but will need to align with new partner before making any launch decisions, Hall said.

Part of Pepsi Now, Poppi Will Map Out Integration Deliberately; No Word Yet on Distribution Cutover; 'Let Poppi Be Poppi'

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